The amendment to the legal regulations of 22 August this year introduces important changes for the property development industry and flat buyers. The contribution to the Property Development Guarantee Fund (DFG) will change from 0% to 0.45% for some investments started before 1 July 2022.

What exactly is changing?

  1. New obligations for developers – Development companies must update their prospectuses and provide them to customers to whom they have previously been issued or with whom reservation agreements have been concluded.
  2. Annex to the prospectus – Developers may communicate changes in the form of an annex, which will facilitate the process. It will contain only the changed information, including the new DFG rate.
  3. Impact on buyers – Customers should not be surprised if they receive a new prospectus or annex from the developer. The change is intended to increase protection for buyers in the event of the developer’s bankruptcy.
  4. Estimates – The new regulations may apply to as many as 17,000 contracts, and the estimated revenue for the fund will amount to approximately 70 million PLN.

It is worth remembering that the new rate applies to contracts concluded after 21 August this year as part of the aforementioned investments.